The typical rental arrangement is a month-to-month agreement. However, some renters and rental owners prefer a lease for a fixed length of time, such as six months or one year. Leases offer several advantages for renters. Your rent cannot be raised during the term of the lease. You cannot be asked to move out unless you fail to pay the rent or violate another provision of the lease. When a manager has trouble finding or keeping renters, you may receive a free month of rent for signing a lease. Despite the positives, you need to weigh one significant negative €“ you are liable for the rent until the end of the lease, even if you dont live there anymore. This obligation can pose a problem if something changes in your life. What happens when your company transfers your job to another city? What if you and your roommate end your relationship? Or one of your parents becomes ill and you need to move closer to their home? If you must €œbreak€? or end the lease early, notify your rental manager immediately and in writing. Once notified, the manager is obligated to minimize your potential financial loss by finding a new renter as soon as possible. Your liability is limited paying the rent until a new renter moves in as well as any reasonable advertising costs. Taking the potential cost of this liability into consideration, you may be able to negotiate a reasonable €œearly termination payment€? that ends your liability regardless of when a new renter moves in. The typical termination payment is an amount equal to two months rent, which covers the usual cost of advertising the vacant rental, finding another qualified renter, and allowing for two to four weeks before the new renter moves in. Be sure to that any agreement is put in writing and signed by you and the manager. Fulfilling your lease obligations will prevent financial damage to the rental owner, ensure a good rental reference for yourself, and protect your credit rating.

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